Bitwise has filed with the U.S. Securities and Exchange Commission to transform its $1.4 billion crypto index fund into an exchange-traded fund (ETF), aiming to list it on NYSE Arca. The fund maintains a portfolio focused primarily on Bitcoin and Ethereum, which constitute over 91% of holdings, demonstrating a strategic selection process aimed at minimizing risk. This includes stringent criteria for asset selection, such as meeting trading volume requirements and being above $0.01 for 30 consecutive days. Bitwise employs Coinbase Custody for digital assets and The Bank of New York Mellon for administrative duties, emphasizing the importance of custody security. The filing also includes a 90% surveillance sharing agreement requirement, reflecting increased regulatory scrutiny in the ETF space. If the ETF is approved, it could offer traditional investors exposure to a diversified basket of cryptocurrencies through regular brokerage accounts, marking a significant evolution in how digital assets are integrated into mainstream finance.

Source 🔗